The importance of dynamic pricing
The dynamic pricing strategy finds its roots in the powerful idea of changing prices according to competition. Dynamic pricing is not a newborn kind of strategy, airline companies used to use it in the 80' for fixing ticket prices. Thanks to technology, today is, however, possible to take advantage of different automatic tools that have the goal of automate different tasks.
The strength of these tools is to be able to automate operations that if done manually would take away a lot of time, but above all allow you to always be aligned with the competition. Timeliness and immediate reaction are in fact the right definitions to best describe the concept of dynamic prices of Competitoor.
Timeliness and fast reaction
A fast reaction to your competitors' price variation is essential to be aggressive and competitive in the world of online commerce. More and more companies tend to adopt this automation strategy, thus revealing a "must have" for online success.
Another advantage of dynamic prices is certainly linked to the analysis of competitors. Today it is no longer enough, nor even a winning strategy, to change prices based on demand or visits on the website. Today prices need to be changed according to what competitors do, adapting our pricing strategy to our competitors. It is therefore essential, in this step, to exploit the potential of price intelligence to align us in real time with our market.
This type of solution is essential for e-commerce because tools like Competitoor allow the manager to always get updated and accurate data, as well as automating the re-pricing on the website. The collected data allow the company to have a clear view of the prices of its market, and to know every competitors' move.
Whether you want to use the dynamic pricing strategy or not, knowing how your competitors are changing their prices is vital to your business. It is not enough to check Amazon or a price comparator from time to time to remain competitive, you need professional tools that can really help you in your daily online sales.